Underquoting, dummy bidding, false documents: Why ‘Teflon’ Sydney agent was suspended

High-earning real estate agent Josh Tesolin has openly admitted he has been the subject of an investigation by the NSW Office of Fair Trading in recent months, publicly decrying what he might have done to earn such scrutiny.

“I’d like to hear what it is. And I’d like to respond back as fully as possible with the truth,” said Tesolin, known among his contemporaries as “Teflon Josh”.

Now he knows: Dummy bidding, underquoting, high pressure sales tactics and producing false documents to Fair Trading are among the allegations being levelled against one of Australia’s highest-earning real estate agents.

An extensive investigation by the regulator has landed Tesolin and his private real estate company, Tesolin Consulting, a four-month licence suspension – pending possible disciplinary action – over allegations that he has committed serious and repeated breaches of the law.

Included in the allegations are more than 100 cases of underquoting by Tesolin, all while his corporate interests operated under the Ray White Quakers Hill banner.

Fair Trading’s suspension comes on the day The Sydney Morning Herald and The Age launched Bidding Blind, an exhaustive 18-month data investigation into what has been revealed to be industrial-scale underquoting across Sydney and Melbourne’s auction markets.

An investigation by this masthead into Tesolin’s business conduct a month ago revealed a unique incentive scheme whereby he charged clients tens of thousands of dollars’ extra commission by way of a last-minute incentive payment he said would boost buyer interest.

The scheme meant people who were selling their houses in suburbs such as Quakers Hill and Acacia Gardens had their initial commission of $40,000-plus increased to more than $75,000 and $80,000 as part of the last-minute proposal.

The scheme was detailed in a leaked team SMS chat shared by the broader Tesolin team office, and showed Tesolin could turbocharge his commissions to total $420,000 in one day.

Tesolin was Ray White’s highest-earning agent in recent years, and he ran the group’s most lucrative office, boasting on social media of earning more than $9 million worth of commissions last financial year alone.

Ray White had maintained an unwavering commitment to its star performer, but a few weeks after this masthead revealed details of his incentivised commission, the real estate giant launched its own internal investigation into the claims.

Days later, the real estate giant and Tesolin mutually agreed to terminate their franchise agreement.

Tesolin rebranded his Quakers Hill office a week ago as part of the Brisbane-based brand NGU, run by his friend and now business associate Emil Juresic.

Tesolin has declined to comment. His newly rebranded NGU Instagram and Facebook social media pages had been taken down by Saturday morning.

Fair Trading’s agent licence register flagged the suspensions late on Friday when he was served with a show-cause notice. A response is due by August 29 as to why disciplinary action should not be taken.

“The suspension of the licences of Joshua Tesolin and Tesolin Consulting Pty Ltd reflects the seriousness of the contraventions we believe have been committed and the importance of maintaining public confidence in the property sector,” said Fair Trading Commissioner Natasha Mann.

“NSW Fair Trading has an increased regulatory focus on professional misconduct by NSW real estate agents. Agents must keep up to date with their professional responsibilities and act in accordance with the law at all times.”

Corporate restructure expert David Mansfield, of Deloitte, has been appointed manager of Tesolin Consulting during the suspension.

As recently as last week Tesolin rejected suggestions of underquoting on any of his sales, telling this masthead: “If NSW Fair Trading were to investigate any of these sales, I am confident that there will be no case to answer because the legislation has been followed.

“I personally have never received a penalty notice from NSW Fair Trading. I am keeping up to date on a three-year investigation into Ray White Quakers Hill by reading media articles.”

One of Tesolin’s former clients, Michelle Higson, who had lodged a complaint about Tesolin with the regulator, said on Saturday that she was relieved Fair Trading had taken action.

Higson’s former home at Bungarribee, opposite Western Sydney Parklands, was listed by Tesolin last year with hopes of $1.34 million, but on the day of the auction it was passed in and instead purchased by Tesolin’s wife, Sophia, for $1.02 million. A consent form was signed by Higson, agreeing to the agent’s interest in the purchase.

It is one of a dozen properties the Tesolins own, and of which Tesolin was the selling agent for half of them. His property portfolio totals more than $15 million in acquisition costs alone.

Minister for Better Regulation and Fair Trading Anoulack Chanthivong said that stamping out underquoting is a regulatory priority of the newly established Strata and Property Services Taskforce, and the serious enforcement action against Tesolin is an example of that.

“Underquoting is unlawful. It’s not only bad for people looking to buy, it also frustrates and harms other real estate agents who do the right thing when advising home owners about sales campaigns,” Chanthivong said.

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